Demand is relatively stable within the US import wire rod market, but sources predict an uptick in order activity in the near-term due to current US domestic wire rod price trends. Earlier this week, US wire rod mills announced another price increase—the $2.25 cwt. ($45/nt or $50/mt) increase, effective with shipments as of February 1, matched the January 2-effective increase that has not yet fully absorbed into the domestic market. However, sources say the announcement is indicative of mills’ determination to firm up domestic prices, which makes import offers “all the more attractive” to US buyers.
So far, US import wire rod offers have not seen a measurable change in the last week, and even if inquiries increase as expected, sources say offer prices won’t necessarily go up as well. As such, offers of imported wire rod in the US domestic market from Germany are still around the level of $31.00 cwt. ($620/nt or $683/mt) DDP loaded truck in US Gulf ports, with offers from Brazil reportedly “comparable” to German prices.